Minimum wage in Montgomery County, 2021–2026

Large employers

$18 an hour1

51 or more employees. Since Jul 1, 2026.

Mid-size employers

$16.50 an hour1

11 to 50 employees, or 11 or more that are 501(c)(3) tax-exempt or Medicaid-funded home health or home and community-based services providers. Since Jul 1, 2026.

Small employers

$15.95 an hour1

10 or fewer employees. Since Jul 1, 2026.

Next adjustment

Jul 1, 20271

From July 1, 2027 the large-employer rate rises each year by the CPI-W; the mid-size and small rates by the CPI-W plus up to 1% until they equal the rate above them. Not announced by Nov 3, 2026.

How it is adjusted

Adjusted each July 1 by the prior year’s Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Washington area, rounded to the nearest five cents (County Code Section 27-68).1

Tipped employees

$4 an hour in cash1

Tipped: more than $30 a month in tips. The $4.00 cash wage plus tips must reach the county minimum wage; restaurants using a tip credit give a wage statement every pay period.

Maryland minimum wage

$15 an hour2

The state rate; Montgomery County's own rate applies where it is higher.

The Montgomery County minimum wage for large employers rose from $15 in 2021 to $18 in 2026, $3 above Maryland's $15

$0$5$10$15$20202120222023202420252026$15$18

Line chart of the Montgomery County minimum wage for large employers against Maryland's: $15 in 2021, $15.65 in 2022, $16.70 in 2023, $17.15 in 2024, $17.65 in 2025, and $18 in 2026. Maryland: $11.75 in 2021, $12.50 in 2022, $13.25 in 2023, $15 in 2024, and $15 in 2026.

Data: Montgomery County Office of Human Rights, Maryland Department of Labor, and U.S. Department of Labor, Wage and Hour Division, as of Nov 3, 2026. CC BY 4.0 · LeadChange Group Hiring Cost Atlas. Montgomery County: the rate set on each step in the year, as Montgomery County Office of Human Rights published it. Maryland: the U.S. DOL table to 2024 (2025 is not in it, so the line breaks there), then the rate in force when checked.
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The Montgomery County minimum wage for large employers rose from $15 in 2021 to $18 in 2026, $3 above Maryland's $15. LeadChange Group Hiring Cost Atlas; Data: Montgomery County Office of Human Rights, Maryland Department of Labor, and U.S. Department of Labor, Wage and Hour Division, as of Nov 3, 2026. CC BY 4.0. https://leadchangegroup.com/guides/minimum-wage-by-state/maryland/montgomery-county/#minimum-wage-history

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Rate steps on record
The Montgomery County minimum wage for large employers rose from $15 in 2021 to $18 in 2026, $3 above Maryland's $15: rate steps on record
EffectiveLarge employersMid-size employersSmall employers
Jul 1, 2021$153——
Jul 1, 2022$15.653$14.503$143
Jul 1, 2023$16.704$154$14.504
Jan 1, 2024——$155
Jul 1, 2024$17.155$15.505$156
Jul 1, 2025$17.651$161$15.501
Jul 1, 2026$181$16.501$15.951

Each rate from the day it took effect, as Montgomery County Office of Human Rights published it (“—”: no new rate for that group that day).

What a full-time minimum-wage employee costs a small employer in Montgomery County

At $15.95 an hour (the rate for small employers) for 40 hours a week, a new employer with 10 staff pays $33,176 in wages and $3,096 on top (9.3%) in federal and Maryland payroll taxes and workers' comp.

Wages (2,080 paid hours a year)
$33,176
Social Security (employer share)6.2%7 of $33,176
$2,057
Medicare (employer share)1.45%8 of $33,176
$481
FUTA (federal unemployment tax)0.6% (after the full 5.4% state credit)9 of $7,0009
$42
State unemployment insurance (new employer)2.6%10 of $8,50010
$221
Workers' compensation (benchmark index rate, 2024 study)$0.89 per $100 of payroll11
$295
Total a year
$36,272

If you also offer single health coverage, the average employer here pays about $6,695 more a year: a $8,760 average premium12 less $2,065 paid by the employee12.

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Frequently asked questions

What is the minimum wage in Montgomery County in 2026?

$18 an hour for large employers (51 or more employees), $16.50 an hour for mid-size employers (11 to 50 employees), and $15.95 an hour for small employers (10 or fewer employees), since Jul 1, 2026.

What will the Montgomery County minimum wage be in 2027?

Not announced by Nov 3, 2026. From July 1, 2027 the large-employer rate rises each year by the CPI-W; the mid-size and small rates by the CPI-W plus up to 1% until they equal the rate above them.

What is the minimum wage for tipped employees in Montgomery County?

At least $4 an hour in cash for employees with more than $30 a month in tips; cash wage plus tips must reach the Montgomery County minimum wage.

Which Montgomery County minimum wage applies to my business?

$18 an hour for 51 or more employees; $16.50 an hour for 11 to 50 employees, or 11 or more that are 501(c)(3) tax-exempt or Medicaid-funded home health or home and community-based services providers; $15.95 an hour for 10 or fewer employees, since Jul 1, 2026.

How much does a minimum-wage employee cost an employer in Montgomery County?

About $36,272 a year full time at $15.95 for an employer with 10 staff: $33,176 of pay plus $2,801 in payroll taxes and $295 in workers' comp, before any health coverage.

Is the Montgomery County minimum wage higher than Maryland's?

Yes: even its lowest rate, $15.95, is above Maryland's $15 an hour; large employers pay $3 more.

Sources

The 13 pages this page's facts come from. The date beside each is our last check of the facts taken from it (the oldest, when they differ). The numbers beside the figures above link here.

Quotes from the sources
  1. Montgomery County Office of Human Rights montgomerycountymd.gov/office-human-rights/minimum-wage-increase“Large employers (51 or more employees): $18.00 per hour” “Mid‑size employers (11–50 employees): $16.50 per hour” “Small employers (10 or fewer employees): $15.95 per hour” “July 1, 2027 and subsequent years Increase annually by CPI-W. Increase annually by CPI-W + up to 1%, until equal to large employer rate. 1 Increase annually by CPI-W + up to 1%, until equal to other employers.” “The minimum wage for large employers required under County Code Section 27-68 is adjusted annually on July 1 according to the average increase, if any, in the previous year’s Consumer Price Index for Urban Wage Earners and Clerical Workers for Washington-Arlington, rounded to the nearest five cents;” “Tipped employees (earning more than $30 per month in tips) are guaranteed earnings equaling no less than the Montgomery County Minimum Wage Rate per hour. Employers must pay at least $4.00 per hour.” “July 1, 2025 $17.65 $16.00 $15.50” “A “ large employer” is an employer who employs 51 or more employees.” “A “ mid-sized employer” is: an employer who employs between 11 and 50 employees; or an employer who employs eleven or more employees and: has tax-exempt status under Section 501(c)(3) of the Internal Revenue Code; or provides “home health services” as defined by 42 C.F.R. § 440.70 or “home or community-based services” as defined by 42 C.F.R. § 440.180, and receives at least 75% of gross revenues through state and federal Medicaid programs.” “A “ small employer” is an employer who employs 10 or fewer employees.” “This amount plus tips must equal or greater than the Montgomery County Minimum Wage Rate. Restaurant employers who utilize a tip credit are required to provide employees with a written or electronic wage statement for each pay period showing the employee’s effective hourly rate of pay including employer-paid cash wages plus tips for tip credit hours worked for each workweek of the pay period.”
  2. Maryland Department of Labor labor.maryland.gov/labor/wages/wagehrfacts.shtml“Most employees must be paid at least the Maryland State Minimum Wage Rate of $15 per hour, but there are some exemptions.”
  3. Montgomery County Government www2.montgomerycountymd.gov/mcgportalapps/Press_Detail.aspx?Item_ID=40173“Bill 28-17 raises the minimum wage incrementally each July 1. … After hitting the $15 minimum wage rate last year, the law now requires the Chief Administrative Officer to adjust the rate each year.” “Effective date Large employer Mid-sized employer Small Employer July 1, 2022 $15.65 $14.50 $14”
  4. Montgomery County Government montgomerycountymd.gov/news/montgomery-county-minimum-wage-will-increase-july-1-1670-hour-large-employers“Starting July 1, the County minimum wage will increase to $16.70 per hour for large employers.” “The rate for mid-sized employers (with 11-50 employees) will be $15 per hour.” “The rate for small employers (with 1-10 employees) will be $14.50 per hour.”
  5. Montgomery County Government www2.montgomerycountymd.gov/mcgportalapps/Press_Detail.aspx?Item_ID=44857“The rate for small employers (10 or fewer employees) will remain at the $15 per hour rate that became effective Jan. 1, 2024, pursuant to State law.” “Starting July 1, the minimum wage rate for large employers (with 51 or more employees) will increase by 45 cents to $17.15 per hour” “the minimum wage rate for mid-sized employers (with 11-50 employees) will increase by 50 cents to a rate of $15.50 per hour.”
  6. Montgomery County Government montgomerycountymd.gov/news/montgomery-county-minimum-wage-will-increase-july-1-1715-hour-large-employers-1550-hour-mid-sized-employers“Due to a change in State law, the rate for small employers (10 or fewer employees) was increased to $15 per hour on Jan.1, 2024. This $15 wage rate for small businesses will remain in effect for the next twelve months.”
  7. Internal Revenue Service IRS Publication 15 (Circular E), Employer's Tax Guide“For 2026, the social security tax rate is 6.2% (amount withheld) each for the employer and employee (12.4% total).”
  8. Social Security Administration ssa.gov/oact/cola/cbb.html“Tax rates under the HI program are 1.45 percent for employees and employers, each, and 2.90 percent for self-employed persons.”
  9. Internal Revenue Service Topic no. 759, Form 940 – FUTA tax (IRS)“If you're entitled to the maximum 5.4% credit, the FUTA tax rate after credit is 0.6%.” “FUTA tax rate: The FUTA tax rate is 6.0%. The tax applies to the first $7,000 you paid to each employee as wages during the year.”
  10. U.S. Department of Labor, Employment and Training Administration oui.doleta.gov/unemploy/content/sigpros/2020-2029/January2026.pdf“New employer rate shown is the base rate. … MD … 2.60%” “MD … $8,500”
  11. Oregon Department of Consumer and Business Services oregon.gov/DCBS/DCBSPubs/reports/general/prem-rpt/24-2083.pdf“index rate, expressed in terms of dollars per $100 of payroll. … Table 1. Workers’ compensation premium rate ranking … rank State Index rate Percent of study median Effective date … 37 33 Maryland 0.89 82% Jan. 1, 2024”
  12. Agency for Healthcare Research and Quality (MEPS-IC) meps.ahrq.gov/mepsweb/data_stats/summ_tables/insr/state/series_2/2025/ic25_iia_f.pdf“Table II.C.1 Average total single premium (in dollars) per enrolled employee … Division and State Total … Maryland 8,760 7,859 8,407 7,525 9,288 9,068 7,628 9,061” “Table II.C.2 Average total employee contribution (in dollars) per enrolled employee for single coverage … Division and State Total … Maryland 2,065 -- 2,078 2,027 2,296 2,093 1,586 2,193”
  13. U.S. Department of Labor, Wage and Hour Division Changes in Basic Minimum Wages in Non-Farm Employment Under State Law: Selected Years 1968 to 2024“Maryland 1.00 & 1.15 1.30 1.60 2.20 & 2.30 2.90 3.10 3.35 … Maryland 3.35 3.80 4.25 4.25 4.25 4.75 5.15 … Maryland 5.15 5.15 5.15 5.15 5.15 5.15 5.15 … Maryland 6.15 6.15 6.55 7.25 7.25 7.25 7.25 … Maryland 7.25 8.25 8.75 8.75 10.10 11.00 … Maryland 11.00 11.75 12.50 13.25 15.00”